M/S.MANJOO LOTTERY V. COMMISSIONER OF INCOME-TAX

WP(C)/35840/2016

AI Insights

The case involves M/s. Manjoo Lottery, the petitioner, who challenged the attachment of their bank accounts by the Tax Recovery Officer for recovery of a tax demand amounting to 2,32,14,000/-. The petitioner sought the refund of 1,35,16,407/- that was withdrawn from their account by the Federal Bank at Aluva under the said recovery proceedings. The High Court had earlier issued an interim order staying the attachment upon the petitioner providing a bank guarantee. The main legal contention revolved around the validity of the tax recovery process and the subsequent appeal against the assessment order issued by the Deputy Commissioner of Income Tax.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 726964 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 16-12-2016
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; C K KARUNAKARAN
• Assessee Lawyers: GEORGE POONTHOTTAM; NISHA GEORGE
• Keywords: Assessment Order; Bank guarantee; Income Tax; Tax Recovery

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE FRIDAY, THE 16TH DAY OF DECEMBER 2016/25TH AGRAHAYANA, 1938 WP(C).No. 35840 of 2016 (D) ---------------------------- PETITIONER: ----------- M/S.MANJOO LOTTERY, MUNICIPAL BUS STAND BUIDING, KANNUR - 670 001, REPRESENTED BY ITS MANAGING PARTNER. BY ADVS.SRI.GEORGE POONTHOTTAM SMT.NISHA GEORGE RESPONDENT(S): -------------- 1. COMMISSIONER OF INCOME-TAX (APPEALS-IV), POORNIMA BUILDING, PANAMPILLY NAGAR, ERNAKULAM, KOCHI-682036. 2. THE COMMISSIONER OF INCOME TAX (CENTRAL), 5TH FLOOR, KANDAMKULATHY TOWERS, M.G.ROAD, COCHIN - 682 011. 3. TAX RECOVERY OFFICER (CENTRAL), 5TH FLOOR, KANDAMKULATHY TOWERS, M.G.ROAD, COCHIN - 682 011. 4. THE PRINCIPAL OFFICER, FEDERAL BANK LTD., ALUVA, ERNAKULAM DISTRICT - 682 020. 5. THE BRANCH MANAGER, DHANALAXMI BANK LIMITED, KANNUR, TV 33/363/N., GRAND PLAZA, FORT ROAD, KANNUR - 670 001. R1 TO R3 BY SRI.JOSE JOSEPH, SC R5 BY ADV. SRI.C.K.KARUNAKARAN,SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16-12-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: mbr/ WP(C).No. 35840 of 2016 (D) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS: ----------------------- EXHIBIT-P1: TRUE COPY OF THE ASSESSMENT ORDER DATED 11.11.2011 ISSUED BY THE DEPUTY COMMISSIONER OF INCOME TAX, KANNUR RANGE. EXHIBIT-P2: TRUE COPY OF THE NOTICE OF DEMAND DATED 11.11.2011 ISSUED BY THE DEPUTY COMMISSIONER OF INCOME TAX. EXHIBIT-P3: TRUE COPY OF THE PETITION FILED BEFORE THE 2ND RESPONDENT DATED 08.03.2016. EXHIBIT-P4: TRUE COPY OF THE APPEAL PETITION DATED 15.04.2016 FILED BY THE ASSESSEE BEFORE THE 1ST RESPONDENT. EXHIBIT-P5: TRUE COPY OF THE APPLICATION DATED 10.07.2016 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT-P6: TRUE COPY OF THE PETITION DATED 28.10.2016 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT-P7: TRUE COPY OF THE NOTICE DATED 18.10.2016. EXHIBIT-P8: TRUE COPY OF THE NOTICE DATED 20.10.2016. EXHIBIT-P9: TRUE COPY OF THE STATEMENT ISSUED BY M/S.FEDERAL BANK DATED 04.11.2016. EXHIBIT-P10: TRUE COPY OF THE COMMUNICATION DATED 04.11.2016 ADDRESSED TO RESPONDENTS 1 TO 3. RESPONDENT(S)' EXHIBITS: NIL ----------------------- //TRUE COPY// P.S. TO JUDGE mbr/ A.M. SHAFFIQUE, J. -------------------------------------- W.P.(C).No.35840 of 2016 ------------------------------------------------- Dated this the 29th day of November, 2016 J U D G M E N T The petitioner has approached this Court challenging Exts.P7 and P8 and seeking for a direction to refund 1,35,16,407/- ₹ withdrawn from Federal bank at Aluva. 2. By Exts.P7 and P8 the bank accounts of the petitioner had been attached for recovery of an amount of 2,32,14,000/-. By an ₹ interim order dated 08.11.2016, this Court directed to keep in abeyance of Exts.P7 and P8 on the petitioner giving a bank guarantee in favour of the Tax Recovery Officer for an amount of 1 ₹ Crore. 3. Learned counsel for the petitioner submits that the petitioner had already provided the bank guarantee. 4. Having regard to the aforesaid factual situation, I don't think that any further directions are required in the matter. Further proceedings pursuant to Exts.P7 and P8 shall remain stayed till pendency of the appeal which has been filed by the petitioner against Ext.P1 assessment order. This writ petition is disposed of as above. Sd/- A.M. SHAFFIQUE, JUDGE AV "